What is the Trust Annual Return Rounding Amount?
The Trust Annual Return Rounding amount appearing in The Statement of Taxable Income (SOTI) is a result of rounding differences between the SOTI and the Trust Annual Return.
The SOTI will force the taxable income of the fund to be the same as the Trust Annual Return.
See the example below for more information on how you can reconcile this amount.
Locating the Problem
View the Trust Annual Return Rounding amount from the Statement of Taxable Income.
Trust Rounding Amount* = Taxable Income less Net profit before distributions Add Total of Less items Less Total of Add items
(*This should be equal to the difference between unrounded amounts in the Operating Statement and the truncated amounts in the Trust Annual Return. )
In the example below this is equal to $65,307 - $35,045.87 + $46,478.61 - $76,743.83 = $(4.09)
If the Trust Annual Return Rounding amount is immaterial, this can be disregarded, as the Simple Invest 360 truncates the Total net Income or Loss within the Trust Annual Return leading to the rounding difference.
If the rounding difference is significant, please refer to the possible issues and solutions below.
The Trust Annual Return Rounding amount could be caused by one or more of the following issues:
**right click on any image to open in a new tab
When recording or removing transactions within the Transaction List, or when making changes to the tax labels (see below), you will need to go through the year-end workflow again to ensure that the modifications are properly accounted for.
Accounts processed for the current financial year will need to have tax labels attached. This allows the accounts and the respective amounts to accurately reflect the Tax Reconciliation Report and Statement of Taxable Income Report.
Check the Tax Labels icon prior to preparing the year-end workflow.
Ensure that tax labels have been applied to all accounts, especially custom accounts for income and expenses.
Once completed, proceed with the year-end workflow.
If the tax return had been previously generated prior to making tax label changes, ensure you have regenerated the tax return (see above).